The impact of the ongoing conflict between Russia and Ukraine has started to be seen all across the world. Ukrainian exports have been halted due to the war, while Russia has become the most sanctioned country. With Russia and Ukraine being one of the largest exporters of raw materials in the world, here are a few things that will become costlier in India due to the war in Ukraine.
1. Edible Oils
India imports 70% of its sunflower oil from Ukraine. The halt in Ukrainian export has resulted in an increase in the price of sunflower oil. This, in turn, could lead to an increase in the prices of other edible oils as well.
2. Crude petroleum
In 2020, Russia was the third-largest producer of oil. Whereas India imports 80% of its energy needs through oil imports. Amidst the war between Russia and Ukraine, India has already seen a rise in the prices of petrol and diesel for two days in a row now. The prices are expected to increase further.
Ukraine is known as the ‘breadbasket of Europe’. Russia and Ukraine together contribute to around 29% of wheat export. The ongoing war between Russia and Ukraine has caused a fear of a global supply shortage of wheat.
The prices of wheat have already increased, and with the reports of Russia destroying Ukrainian fields and machinery, is expected to increase further.
Ukraine is one of the biggest exporters of corn in the world. With exports reaching a halt in Ukraine, the shipments are not moving out, which has led to an increase in the price of corn.
Russia is a hub of metal exports like nickel, platinum, gold, etc. The continuous sanctions on Russia have made it difficult for these metals to reach the global market. The fear of shortage has resulted in the price of nickel exploding to $100,000 a tonne on the London Metal Exchange.
Russia is also the largest exporter of palladium, a metal that is used in the manufacturing of mobile phones. Just like nickel, the prices of palladium are also expected to increase.
Russia and Ukraine have large iron mines. The world is trying to recover from the shortages at the time of the pandemic, and with the ongoing conflict between Russia and Ukraine, the prices of steel are expected to rise sharply.
7. LPG, Kerosene
With the increase in the prices of crude oil, it was expected that the prices of all the petroleum and petrochemical products will also increase. Resultantly, the price of LPG increased by ₹50 per cylinder on Tuesday, 22 March. The effect is expected to be seen on the prices of kerosene as well.
From staples to crude oils to petrochemicals, the prices of just about everything is increasing. The prices of the products are expected to go even higher.